Credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained a stable outlook on the overall infrastructure sector for the next financial year (FY21). However, the agency revised the outlook on toll roads and wind sector to negative from negative-to-stable and stable, respectively.
As per the Ind-Ra, contracted revenue, minimal volume risk and moderate-to-strong counterparties mitigate cash flow concerns in solar assets. Besides, it said that economic growth deceleration affects the transportation sector, particularly toll roads and infrastructure assets are intrinsic to growth revival as well.
The report further noted that wind assets profile face headwinds such as resource volatility and weakening profile of counterparties and original equipment manufacturers, who are also operations and maintenance contractors.
Besides, the rating agency said that the overall financing environment for infrastructure remains moderate. It also said that bank loan financing continues to dominate with increasing interest of international investors for renewable projects with a reasonable operational history.
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